Letter of Credit (L/C) at Sight and Usance - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=7) +--- Thread: Letter of Credit (L/C) at Sight and Usance (/showthread.php?tid=7874) |
Letter of Credit (L/C) at Sight and Usance - Abuzar Qazi - 04-25-2010 What is the difference between at sight LC and Usance LC and how both affects the exchange gain or loss........ Please Guide - Abuzar Qazi - 04-29-2010 Yaar koi hamen bhi guide karde..........Kamran bhai [(] hamen bhi kuch guidance de den - ciapk - 04-30-2010 Dears, L/Cs may be classified as under 1. Sight - Letters of Credit (L/C - Sight) 2. Usance Letters of Credit (L/C - DA) In case of L/C - Sight, the underlying draft is drawn at sight and the relevant documents are held by the Bank as security, until the same are retired. In case of L/C - DA, the underlying draft is for a tenor stipulated in the L/C,payable by the customer on the due date. as 90 days etc - theahmer - 06-01-2010 AoA, In simplest words, A sight LC means that whenever the Bill of Exchange is presented at counter, it must be paid then and there (ofcourse if the LC docx are in order). While a Usance Bill is first presented then accepted and after that it is paid. Usance bills are usually for a period of 30, 60, 90 days. So if a usance bill is of 30 days then it would be paid 30 days after presentation and acceptance. Regards, |